A few tips for coding screencasting:
For coding screencasts you should make sure that chroma subsampling isn't enabled when you're doing the encode of the video otherwise it may look worse with highly contrasting areas.
Decrease the encoding frame rate if its primarily going to be just a screencast without a lot of motion on the screen. At the expense longer mpeg segments (and more latency) you may want to increase the group-of-picture size.
There shouldn't be a reason that the encoded screencast looks worse then how it appeared to you unless the encoder you are using is just mashing the quality down.